Women’s fashion retailer Bonmarché shares collapse as it warns on profits
Women's fashion retailer Bonmarché's shares plunged 20 per cent in early morning trading after issuing a profit warning today, blaming weak high street demand and a lack of footfall.
The company said its online sales continued to grow strongly but that sales in store have dipped in recent months.
Underlying profits for the full year are now expected to be £5.5m – down £8m from the previous year.
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Bonmarché had issued a positive trading update in July but said sales in its stores had failed to maintain the momentum gained earlier this year.
In a trading update, the company said: “The continuation of warm weather for an extended period may have delayed demand for early autumn stock, but we believe that the more dominant factor is that underlying consumer demand for the UK high street is weaker, which is impacting footfall.”
Shares in the company, which has more than 300 stores across the country, fell more than 22 per cent in early trading.
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Chief executive Helen Connolly said: “These are undoubtedly challenging times in the retail industry and, in common with many other businesses, Bonmarché's store trading has been impacted by weaker consumer sentiment and footfall.
“We have continued to improve our proposition, particularly our digital capabilities, reflected in the strong online sales.”
She added that despite the "challenging market, the health of the business remains strong".